Within the framework of the forum on the tax reform, which is in force and analyzed its effects in the macroeconomic context, Jaime Alberto Cabal, president of the National Federation of Merchants (Fenalco), said that sIf a labor reform is approved as has been announced, the costs of hiring in Colombia will end up between 40 and 50 percent depending on the sector.
“This is the biggest alert we can do. If the labor reform prospers in Colombia as announced, this country will be another in terms of consumption, growth and employment. At this moment, if we take the costs of what is already the reduction of the weekly work day and we increase the value of the minimum wage, overtime and the payment of Saturday hours, I do not understand what company will be able to with these valuesCabal said.
President of the National Federation of Merchants, Fenalco;
Diego Caucayo / Time
The union leader recalled that 93 percent of the country’s companies are small, micro and medium-sized.
“This would be devastating for companies, for their sustainability and for employment. According to an exercise carried out by Fedesarrollo, the impact of the reform is between 12 and 17 percent on last year’s costs. If this prospers, it would cause the hiring of companies, depending on the sector, to rise between 40 and 50 percent”said.
In the same way, in a climate of higher inflation, Cabal pointed out that “the growth of the economy will be negative, not even 0 or 0.2 or 1 percent. One scenario is with labor reform and another is without it. This is the biggest alert of the year and it is a call to the Government to reconsider doing it”.
Cabal indicated that the reform is focused on those who currently have jobs and not on the unemployed or the informal.
“This constitutes a new barrier to generate more work,” he said.
Likewise, he explained the consequences of the tax reform law.
“When it was being processed at Fenalco, we said that if one did not analyze article by article but in an integral way, then it would go – and I reiterate it – to cause serious effects on savings, consumption and investment”, he pointed out.
María Lorena Gutiérrez, Corficolombian president.
Diego Caucayo / Time
On the other hand, María Lorena Gutiérrez, president of Corficolombiana, stated that the tax reform increased the cost of capital. “That rose almost 10 points and is at 47.8 percent in Colombia and that is going to affect investment in the country. This added to other messages, such as those of the reforms, causes greater uncertainty, ”he explained.
The forum organized by the economic newspaper Portafolio included the participation of Luz Stella Murgas, president of Naturgas; Juan Guillermo Ruíz, managing partner of the tax and foreign trade team of the legal firm, Posse Herrera Ruiz.
In addition to the experts Juan Camilo de Bedout, partner in the tax, customs and transfer pricing litigation and controversy area of the firm Posse Herrera Ruiz; Juan Daniel Oviedo, economic expert, former director of the National Administrative Department of Statistics, Dane, and now a candidate for mayor of Bogotá, and Camilo Herrera, president of the consulting firm Raddar.
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